Multifamily investors: What has contributed to your growth?

Multi-Family and Apartment Investing
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Multifamily investors: What has contributed to your growth?

Kaylee WalterbachPro Member
Rental Property Investor · Norman, OK · Member since 2018 · 158 posts · 529 votes

Yet another chance to be featured in the next issue of BiggerPockets Wealth Magazine... Multifamily investors, it's your time to shine!

In 50 words or less, let us know: What has contributed most to the growth between your first and most recent investment property?

By responding here, you're allowing us to print your name and response, if chosen, in the next issue of the magazine. We're excited to hear what you have to say!

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Most Popular Reply

Carlos M.
Investor · Lancaster, PA · Member since 2016 · 94 posts · 356 votes
5y

@Kaylee Walterbach I can do it In one word “Tenacity”! You just have to keep pushing forward no matter how hard it gets, and be willing to do what ever it takes! I would say the biggest thing that got my wife and I from our first 5 unit 12 years ago to 91 units / 15 garages / 20 parking spaces now, is the commitment to keep expenses as low as possible and keep re investing all profits for the first 10 years. We did all the maintenance , upgrades , and management for the 1st 10 years. I know it’s not for everyone, but that’s how we grew to 8 million in assets , and a 70k Per month gross rental income.

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  • Tyler Peitzmeier
    Investor · Newport Beach, CA · Member since 2019 · 68 posts · 66 votes
    4y

    For me, my growth has come from the team I have surrounded myself with. Each person has a specific purpose and does it very well for the overall mission. 

    0Reply
  • Himanshu Jain
    Real Estate Agent · Chesterfield, MO · Member since 2014 · 101 posts · 28 votes
    4y

    Persistently adding value to the properties via improvements, and raising rents has been the key for me. This has allowed me to raise the property value, refinance and reinvest in other properties. 

    2Reply
  • Julia Bykhovskaia
    Rental Property Investor · New York City, NY · Member since 2017 · 93 posts · 101 votes
    4y

    Definitely strategically partnering with others who I could "borrow" credibility from. Finding the right partners. 

    1Reply
  • Michael Deering
    Rental Property Investor · Lehigh Valley, PA · Member since 2017 · 200 posts · 191 votes
    4y

    Attending local meet-ups where I network and build my team, learn from larger and more experienced local investors, and make friends

    0Reply
  • Brian Briscoe
    Real Estate Coach · Salt Lake City, UT · Member since 2017 · 273 posts · 414 votes
    4y

    Between first and most recent... that's a great question. Partnership definitely helped with our first deal...

    I'd say the biggest contributor to our growth was focusing on building our reputation. When we closed on our first, we struggled raising capital. Our most recent was our 9th, and the efforts we made to build our brand and reputation through social media, networking events, meetups, and conferences, has made the capital raising side much easier. On the operations side, I learn best by doing and 2 years of operating a small portfolio dramatically increased our capability to manage.

    0Reply
  • Kenneth Mendonca
    Lender · Los Angeles, CA · Member since 2020 · 13 posts · 7 votes
    4y

    What has helped me and my borrowers tremendously is getting your financing lined up ASAP. If you can get real-time financing options while your underwrite/pre-underwrite/screen your deals you'll be leaps ahead of the competition. More often than not the lending process is somewhat like this:

    - Wait "24-48 hours" for your broker and/or lender to get you a quote that is most definitely juiced with teaser rates and unobtainable proceeds. 

    - Wait 2-3 days for some junior analyst 2-3 days to pull comps (which the lender won't even use) which is simply unacceptable

    - Wait 1-2 more days to figure out that your lender requires X% equity to enter the X market.

    By that time, the amazing deal you found could already be lost.

    tldr; If you can screen your deals with intelligent market insights, real-time financing options, and support your expenses with up to date comps with ACTUAL financed comps you'll be lightyears ahead.

    1Reply
  • Lucinda Hamre
    Member since 2021 · 28 posts · 29 votes
    4y
    Quote from @Michael Manchester:

    Being able to execute. When I was able to eliminate, or at least drastically reduce, the wishful thinking and gray areas, things got a lot easier. 100 percent is much easier to execute than 98.


     I completely agree! You learn the hard things *when you need to know it!* You can read books, watch videos, talk to others, but nothing causes you to learn better than doing it! BTW, find a mentor or partner. Better to get 5% of a great deal, and learn why it was successful, than lose $30K or more. If only I'd found that person FIRST....

    0Reply
  • Lucinda Hamre
    Member since 2021 · 28 posts · 29 votes
    4y
    Quote from @Kenneth Mendonca:

    What has helped me and my borrowers tremendously is getting your financing lined up ASAP. If you can get real-time financing options while your underwrite/pre-underwrite/screen your deals you'll be leaps ahead of the competition. More often than not the lending process is somewhat like this:

    - Wait "24-48 hours" for your broker and/or lender to get you a quote that is most definitely juiced with teaser rates and unobtainable proceeds. 

    - Wait 2-3 days for some junior analyst 2-3 days to pull comps (which the lender won't even use) which is simply unacceptable

    - Wait 1-2 more days to figure out that your lender requires X% equity to enter the X market.

    By that time, the amazing deal you found could already be lost.

    tldr; If you can screen your deals with intelligent market insights, real-time financing options, and support your expenses with up to date comps with ACTUAL financed comps you'll be lightyears ahead.


     Agreed, and this knowledge isn't something you just find in a book. That means you will learn while great deals slip through your fingers or you'll jump at horrible deals because you just wanted to buy something. David Greene talks alot about finding your team members. Finding people of character who will tell you the truth is invaluable!

    0Reply
  • Alex BekezaBusiness Member
    Lender · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
    4y

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    1Reply
  • Coty Dolan
    Investor · The Woodlands, TX · Member since 2020 · 45 posts · 23 votes
    4y

    In one word MINDSET. 

    As I started my real estate investing career in 2019 the thought of even being able to purchase a house seemed unobtainable. But as you challenge yourself and overcome obstacles your mindset begins to shift, with every challenge you overcome the more confidence you gain, until soon you have the confidence to take on anything. 

    I started investing in real estate by purchasing a 2 bedroom 1 bath, 700sqft home in 2020. 

    At the end of this month, I am closing on a 50-unit apartment complex in the Tampa area. 

    By the end of this week, my GP team will have submitted an LOI for the acquisition of a 418-unit complex.

    MINDSET IS EVERYTHING. 

    1Reply
  • William Costello
    Indianapolis, IN · Member since 2021 · 193 posts · 150 votes
    4y

    @Kaylee Walterbach definitely being persistent, networking and being on a great team helps for sure 

    0Reply
  • Frank Avallone II
    Lender · Morristown, NJ · Member since 2022 · 153 posts · 71 votes
    4y
    Quote from @Kaylee Walterbach:

    Yet another chance to be featured in the next issue of BiggerPockets Wealth Magazine... Multifamily investors, it's your time to shine!

    In 50 words or less, let us know: What has contributed most to the growth between your first and most recent investment property?

    By responding here, you're allowing us to print your name and response, if chosen, in the next issue of the magazine. We're excited to hear what you have to say!

    @Kaylee Walterbach Surrounding your self with the right people. Having a solid team you can turn to for help and advice is super important. I also think after doing your initial due diligence diving in and getting started is really how you learn. Going through the process yourself teaches you more than you can learn through just research. Then as others have mentioned once you get through some "hurdles" these hurdles will be easier down the road and you'll have the confidence to push forward!

    1Reply
  • Michael Meyers
    Investor · Provo, UT · Member since 2021 · 10 posts · 2 votes
    4y

    I am ALWAYS looking at what's available and crunching numbers. If the numbers work, I make an offer. Even in today's market, there are deals out there if you are vigilant in searching and know how to run the numbers. And I "incentivize" my offers to the sellers.

    0Reply
  • Jeff McKee
    Investor · Austin, TX · Member since 2017 · 18 posts · 5 votes
    4y

    I have been able to scale in MF through education, joining mastermind groups and developing partnerships. I wasn't in MF until 5 years ago, after 1 year of Single Family Residential (SFR) investing, then invested as a LP in 5 MF deals through one mastermind group we joined. My wife, son and I then moved, after 2 years of LPs, to be General Partners in large MF syndication mastermind so now we are in 13 deals, 3,500+ units, as co-GPs focused on Key Principal, At Risk Capital (EMD) and Capital Raising roles. Invest in yourself and take action!

    0Reply
  • Zach Scherschel
    Member since 2022 · 33 posts · 44 votes
    4y

    Learning, listening, mentorship, process and refinement. It's an entrepreneurship, regardless if you have a full-time job still, taking the risk and then taking action based off data and advice is critical. Knowing that I wasn't the first to do it and then building a network allowed me to avoid critical pit-falls. Oh, and BP podcasts and forums!

    0Reply
  • Devonair Jackson
    New to Real Estate · West Georgia · Member since 2021 · 15 posts · 6 votes
    4y
    Quote from @Cathy Malmrose:

    @Kaylee Walterbach Renovation. Renovation. Renovation. The numbers don't make sense when you first look at it and the only reason I took this path is because I had money to burn and it was fun. In the long-run it has turned out to be wildly beneficial financially. Benefits: 1) after the renovation I can raise rent by 100-300/mo per unit, 2) the tenants take better care of the unit, 3) longer stays, 4) referrals so no advertising and minimal downtime between renters (last one had over 300 applicants), 5) every single one of my renovated units continued to pay thru the pandemic, 6) no evictions in renovated homes, 7) ROI of the building as a whole improves. Tenants plant bulbs outside their unit, clean and take care of their space. Renovation is contagious. If I had been tight with funds from the get-go the houses would look very different today. I am proud of my buildings and am fulfilling my life's purpose by making homes better. If you're doing it only for the money you're missing the best part.


     Hello Cathy, 

    I want to begin renovating/rehabbing multi-family using the BRRRR strategy, do you have any advice for me on the rehab portion of BRRRR?

    0Reply
  • Jesse Levitan
    New to Real Estate · Long Island, NY · Member since 2021 · 14 posts · 3 votes
    4y

    @Kaylee Walterbach

    Although I'm currently not in the position to say what has contributed to my individual growth, I have sat down with many real estate investors and entrepreneurs who have said it comes down to the connections you make.

    Tim Bratz, a multi-family investor with over 4,000 doors, told me that getting in the right circles with ambitious movers will completely alter your psychology for the better.

    I would absolutely check him out because he's helping thousands of investors across the country scale their portfolios.

    0Reply
  • Brian Orr
    Rental Property Investor · Tampa, FL · Member since 2016 · 208 posts · 96 votes
    4y

    In all seriousness, BiggerPockets. I discovered BP just as I bought my first property. I was hooked on the podcast, ALL the books, attended the conference in New Orleans and stalk the social media. I've learned more than I could've imagined. My first investment was $30,000. I'm only 6 deals in, but I hold 14 units (4/10), and am currently refinancing my latest at more than DOUBLE the purchase price in 2 years. 

    I think that's more than 50 words but I'd love to talk more about it anytime!

    @Kaylee Walterbach

    0Reply
  • Account Closed
    Rental Property Investor · Mount Dora, FL · Member since 2017 · 33 posts · 35 votes
    4y

    Two things are key. First and foremost,"be resilient"! Along the way, you're going to hit many roadblocks and it's essential to stay positive & keep pushing. Whether it's finding a deal, getting financing, etc. If you stay resilient, you will find a way to make it happen. Secondly, don't be afraid to find mentors and network with those ahead of you. Connections are key! 

    1Reply
  • Salvatore Lentini
    Rental Property Investor · Doylestown, PA · Member since 2008 · 1k+ posts · 1k+ votes
    4y

    @Kaylee Walterbach -

    The biggest contributor to my growth has been networking.  Early on my first half dozen single family rentals were acquired through a Realtor both on and off market.  She then told me about an off market 14 unit multi family, which I bought and it was like adding jet fuel to my real estate investing career.  I realized networking would accelerate the growth of my portfolio.  I went out of my way to contact brokers, title agents, lawyers, other investors... anyone involved in the real estate industry.  I'd make regular calls to them, meet them for coffee and take them out to lunch.  Since that moment of realization 7 years ago, all of my acquisitions have been off market and I am now buying 50,000 sq ft commercial buildings, triple net properties with global companies and developing multi families from the ground up.  So for me, networking has been the biggest contributor to growth and it is surprisingly fun too!

    1Reply
  • John M.
    Investor · Fairfax, VA · Member since 2015 · 1k+ posts · 805 votes
    4y

    Since I am a single investor with no partners, my own key to growth is focus and patience.  Keep in mind I'm not trying to build/scale a company at my age.

    The focus is on my primary business which is not real estate. Any profits I make go straight into NNN investments. Now that focus is starting change as the profits form NNN are taking over my traditional business. Eventually when you acquire enough profitable real estate, the cash flow just continues to feed your new real estate acquisitions

    0Reply
  • Stephen Brown
    Real Estate Broker · Huntsville, AL · Member since 2019 · 1k+ posts · 872 votes
    4y
    Quote from @Salvatore Lentini:

    @Kaylee Walterbach -

    The biggest contributor to my growth has been networking.  Early on my first half dozen single family rentals were acquired through a Realtor both on and off market.  She then told me about an off market 14 unit multi family, which I bought and it was like adding jet fuel to my real estate investing career.  I realized networking would accelerate the growth of my portfolio.  I went out of my way to contact brokers, title agents, lawyers, other investors... anyone involved in the real estate industry.  I'd make regular calls to them, meet them for coffee and take them out to lunch.  Since that moment of realization 7 years ago, all of my acquisitions have been off market and I am now buying 50,000 sq ft commercial buildings, triple net properties with global companies and developing multi families from the ground up.  So for me, networking has been the biggest contributor to growth and it is surprisingly fun too!


     Hope to be in your position soon man! Ironically I've been doing the same thing once I realized the power of networking!

    0Reply
  • Austin Steed
    Real Estate Agent · Columbus, OH · Member since 2016 · 593 posts · 664 votes
    4y

    Market timing seems exhausting. So i'm a huge fan of DCA (Dollar cost averaging). A big part of my success is I buy at-least 2 duplexes a year. Numbers do have to make sense, but I'm on my 4th year doing this one don't plan on stopping. Buy good deals in hot markets and great deals in bad markets. 


    This way I'm taking market timing out of the equation. Basically taking Warren Buffett's advice and applying it to buying multi family Real Estate in Columbus OH. 

    Warren's DCA advice:

    https://www.usatoday.com/story...

    0Reply
  • Todd Dexheimer
    Rental Property Investor · St. Paul, MN · Member since 2016 · 3k+ posts · 3k+ votes
    4y

    Intentional curiosity. Going from buying a single family to now owning nearly 5,000 units came from intentional curiosity, which continually shifted my paradigm to think bigger. Being intentionally curious is about asking questions and seeking answers. How? Network, read, listen, study and most of all TAKE ACTION!

    0Reply
  • Keith Lanier
    Member since 2022 · 43 posts · 10 votes
    4y
    Quote from @Aaron W.:

    Finding the right partners who have complimenting skills and having absolute trust in each other. Treating this as a business and running it like one. 


     Need some good partners that can make a ton of money off what I have discovered in a Big Apartment Complex deal close to 2 major University, i dont have the deep pockets to make my part work?

    thanks!

    0Reply
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